Market News Summer/ Fall 2019
lMarket Update Late Summer 2019
Happy Late Summer
It is hard to believe we are half way thru summer already. The first half of 2019 we saw a lot of sales activity while in the last few months we have seen a steady increase in supply , a sign the market is stablizing into a normal seasonal pattern. Our Island Market is heavily influenced by the Lower mainland Market whch has started to become more active in the traditional areas we see people moving . After an adjustment period where people close home sales we always find a positive effect on our market activity on Vancouver Island within a few months.Our market has been most effected in the Luxury Market which is the one which should most benifit with the market activity increase.
The upcoming Fedreral Election will, as usual, have some effect on buyer activity, especially if there seems to be a power shift or any promises to review the Federa Mortgage Qualification Strees Test that have kept many people from being able to buy a home. " We would suggest you talk to young people about the need to Keep on Top of their bills , especially concerning are small Cellualr phone bills and small "e" bills that can easily be overlooked. These are the type of firms that report evry little thing to the Credit bureas and we have seen many more sales than you acm imaginecollapse because of credit rating drops over some very minor amounts but can take a very long period of time to stop effecting credit ratings.. Denise Dumbrell is a licensed Mortgage Broker formerly heading a multiple Mortgage offices and is trained in Credit Advise , so do feel free to ask if you have concerns over credit qualifications she will be happy to help.
It use to be that many of our larger purchasers , especially rental properties, were International Buyers, Not just Asian but traditionally Americans and Europeans who have always been active and supplied a lot of the rental Properties. The Provincial Tax changes have al but illiminated these traditional investorsand business buyers from our market. Long Term single family rental homes particularly are being sold off by these people which is resulting in an ever increasing shortage of single family rental homes in many communities. We would generally not see this happening in a period of very low federal dollar exchange rates , rather we would have expected an influx of American investment in revenue Single family homes. Definitely the effect of government interference in the marketplace . This shortage is a good spot for Canadian Investors to take a look , as uneffected by many rental restrictions are single family hmes new to the rental market and due to the shortgae some are getting very high rates. This will not change for a number of years until foreign capital stops leaving and returns.
We are seeing more appropriate pricing and are optimistic our market will continue on an upward sales trend
Have an amazing summer and fall
Denise and Wayne Dumbrell
Remax First Realty